Material Terms And Key Terms.
For a lease to be valid it must identify the landlord and the tenant, the exact location of the property, the rental amount along with when the rent is due, and the duration of the lease. Based on the material terms, one would think the lease agreement should be less than a page long. Unfortunately commercial lease agreements often exceed 30 pages in length. Many are more than 50 pages long. So what’s in there? Commercial lease agreements do much more than address the material terms. Nearly every aspect of the parties relationship is addressed in the lease. Other key terms can take up a tremendous amount of the lease. The key terms that must be addressed include: clauses related to the build out of the premises, security deposit, operating expenses, taxes, insurance, casualty, default, assignment and subletting, legal compliance, allowed uses, utilities and utility installation, etc. Other key terms based on your business must be considered.